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Third-party Effects of Water Trading and Potential Policy Responses

Conference paper

This paper by Anna Heaney (ABARE), Gavan Dwyer (PC), Stephen Beare (ABARE), Deborah Peterson (PC) and Lili Pechey (ABARE) was presented to the American Agricultural Economics Association conference, Providence, Rhode Island, 25 - 27 July 2005.

(ABARE - Australian Bureau of Agricultural and Resource Economics, PC - Productivity Commission).

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Contents

Introduction

1   Water property rights and use
Trade in water entitlements and allocations
Implicit water rights and trade

2   Third-party effects of trade
Reliability of supply
Reliability of delivery
Storage and delivery charges
Water quality

3   Policy options
The Randall framework
Reliability of supply
Reliability of delivery
Storage and delivery charges
Water quality

4   Conclusions

References

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